Exchange Net Inflow -97%...Shiba Inu (SHIB), is a sell-off bomb about to explode?

▲ Shiba Inu (SHIB), bear market/AI generated image

Shiba Inu (SHIB) exchange net inflow plummeted by over 97% in 24 hours. The indicator maintained a positive balance of over 226 billion SHIB, signaling additional selling pressure.

According to U.Today on August 2 (local time), Shiba Inu's exchange net inflow, as compiled by CryptoQuant, decreased by over 97% in one day. As of August 1, the net inflow volume exceeded 226 billion SHIB. The fact that net inflow was positive means that deposits to exchanges outnumbered withdrawals.

The volume moved to exchanges is classified as potential supply for selling. U.Today analyzed that selling pressure has increased more rapidly than buying demand observed in recent trades. While exchange activity alone cannot determine price direction, it is an indicator that shows investors' buying and selling movements.

Conflicting signals appeared between on-chain indicators and price trends. Exchange activity sent a bearish signal, but Shiba Inu rose by over 7% in one day. In the previous week, Shiba Inu also surged by over 30% in a single day.

As a similar rebound to the previous week continued, expectations for further sharp rises grew among holders. Conversely, if exchange net inflow remains positive, the volume of pending sell orders could increase. The net inflow of over 226 billion SHIB is a key on-chain indicator that conflicts with the recent upward trend.

The Shiba Inu market has entered a phase where price rebound and exchange selling pressure are occurring simultaneously. Despite a rise of over 7% in one day, exchange inflows surpassed withdrawals. The future trend will be determined by whether additional demand absorbs the exchange inflow volume.

[Key Article Summary]

-Shiba Inu exchange net inflow decreased by over 97% in 24 hours but maintained a positive balance of over 226 billion SHIB.

-Exchange deposits outnumbered withdrawals, indicating a bearish signal where selling pressure exceeded buying demand.

-Despite bearish on-chain signals, Shiba Inu rose by over 7% in one day, showing a divergence between price and exchange activity.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*